Case Study: GRANADA Ltd$.$ is a mid$-$sized manufacturing company operating in South Africa. The company specializes in the production of eco$-$friendly packaging materials and has seen steady growth over the past five years. To capitalize on the rising demand for sustainable products, the management team has proposed a significant expansion plan that includes acquiring new machinery and expanding its factory premises. The total investment required for this expansion is estimated at R$20$ million. The company plans to fund this expansion using its existing capital structure, which consists of equity, preference shares, and debt. Currently, GRANADA Ltd$.$s capital structure includes: $$ Ordinary shares: $2,000,000$ shares issued and trading at R$3$ per share on the Johannesburg Stock Exchange. The most recent dividend declared was R$0\mathrm{.}90$ per share, and the company has consistently achieved a dividend growth rate of $10\%$ per annum. $$ Preference shares: $1,000,000$ cumulative preference shares, currently priced at R$2$ per share. These shares pay an annual fixed dividend of R$0\mathrm{.}12$ per share. $$ Debentures: R$5,000,000$ in $10\%$ debentures issued five years ago, now trading at R$1\mathrm{.}10$ for every R$1$ of nominal value. $$ Bank loan: A R$3,000,000$ loan taken from a local bank, which carries a fixed annual interest rate of $12\%.$ The directors of GRANADA Ltd$.$ are aware that financing decisions will have a lasting impact on the company$$s financial performance. They have tasked the finance department with determining the company$$s Weighted Average Cost of Capital $($WACC$)$ to evaluate the feasibility of the expansion project. Additional information: $$ The corporate tax rate is $30\%.$ The company uses the Gordon Growth Model to calculate the cost of equity. Question $1(20$ Marks$)$ Required: $1\mathrm{.}1$ Calculate the market value of each component of the company$$s capital structure. $1\mathrm{.}2$ Determine the Weighted Average Cost of Capital $($WACC$)$ for GRANADA Ltd$.(8)(12)$